Are you behind in your mortgage payments, or concerned that you soon might be?
Have you received a preforeclosure letter from your lender?
First of all, don't be ashamed. Millions of homeowners are in your situation – many
times through no fault of their own. A job loss, a serious illness or other
circumstances can put you in danger of foreclosure.
The economic downturn has led to many homeowners being "under water" in their
loans, meaning they owe more than the home is worth, making it impossible to
refinance.
If you've become one of those millions, don't panic. Foreclosure, and its
accompanying effect on your credit, is not inevitable. There are many options out
there, and your circumstances may make one of those options feasible and
desirable for you.
To keep your options alive, you need to communicate with your lender. Many
homeowners have lost their homes to foreclosure without ever having contacted the
bank.
This would also be a good time to consult with a tax advisor and a RE/MAX agent.
Thousands of RE/MAX agents are trained in working with distressed properties, and
will be able to help you explore options other than foreclosure.
Many lenders would rather not foreclose. They take a large financial hit on a
foreclosure. So in many cases, they'll consider alternatives. Some of these options
may keep you in your home.
Have you received a preforeclosure letter from your lender?
First of all, don't be ashamed. Millions of homeowners are in your situation – many
times through no fault of their own. A job loss, a serious illness or other
circumstances can put you in danger of foreclosure.
The economic downturn has led to many homeowners being "under water" in their
loans, meaning they owe more than the home is worth, making it impossible to
refinance.
If you've become one of those millions, don't panic. Foreclosure, and its
accompanying effect on your credit, is not inevitable. There are many options out
there, and your circumstances may make one of those options feasible and
desirable for you.
To keep your options alive, you need to communicate with your lender. Many
homeowners have lost their homes to foreclosure without ever having contacted the
bank.
This would also be a good time to consult with a tax advisor and a RE/MAX agent.
Thousands of RE/MAX agents are trained in working with distressed properties, and
will be able to help you explore options other than foreclosure.
Many lenders would rather not foreclose. They take a large financial hit on a
foreclosure. So in many cases, they'll consider alternatives. Some of these options
may keep you in your home.
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U.S. Plan Will Help Homeowners Avoid Foreclosure
Alternatives to Foreclosures
Questions and Answers About the Simplified Short-Sale Process
Tips to Prevent Foreclosures
Treasury Streamlines, Simplifies Short-Sale Process
U.S. Plan Will Help Homeowners Avoid Foreclosure
Loan Modification
While only certain homeowners will be able to take advantage of this alternative, it is your best option because it keeps you in your home and
preserves your credit rating.
Your lender may be willing to modify the terms of the loan, whether it's reducing the principal, lowering the interest rate or other creative
strategies to make the loan affordable for you. As part of the stimulus package, the U.S. government has programs to provide incentives for
banks that use this strategy as an alternative to foreclosure.
Short Sales
This is the fastest-growing foreclosure alternative. Many banks will allow a short sale, in which the home sells for less than the amount of the
loan. This is attractive for lenders because they lose less money than in a foreclosure. Also, short sales generally take less time than
foreclosures, so the banks don't have to carry the properties on their books as liabilities.
And it's attractive for homeowners because the impact on their credit is far less than in a foreclosure. It stays on their credit reports for only two
years, as opposed to seven years for a foreclosure, and often isn't a barrier to purchasing another home.
Short sales are paperwork-intensive, and there are many, many details involved. If you're considering this option, it's critical to work with a trained
real estate agent who knows all the steps required to successfully complete a short sale..
Keep in mind that no matter which option you choose, there may be tax and other financial consequences. You should consult with a tax advisor
or legal expert.
Foreclosure (Cash for Keys)
One of the biggest problems in foreclosures is that homeowners sometimes physically damage the property, or even sell some of the fixtures,
before leaving. Needless to say, this is not a good idea. It may expose the homeowners to financial and legal liability. It also makes the properties
much more difficult to sell.
To prevent this, some lenders offer a program called "Cash for Keys." The homeowners receive a check for vacating the property within a certain
time period and leaving it in good condition. If you have no alternative other than foreclosure, you should ask the bank about this option.
Tips From HUD
The U.S. Department of Housing and Urban Development has 10 tips for avoiding foreclosure:
Don't ignore the problem.
Contact your lender as soon as you realize you have a problem.
Open and respond to all mail from your lender.
Know your mortgage rights.
Understand foreclosure prevention options.
Contact a HUD-approved housing counselor.
Prioritize your spending.
Use your assets.
Avoid foreclosure prevention companies.
Don't lose your house to foreclosure recovery scams.
While only certain homeowners will be able to take advantage of this alternative, it is your best option because it keeps you in your home and
preserves your credit rating.
Your lender may be willing to modify the terms of the loan, whether it's reducing the principal, lowering the interest rate or other creative
strategies to make the loan affordable for you. As part of the stimulus package, the U.S. government has programs to provide incentives for
banks that use this strategy as an alternative to foreclosure.
Short Sales
This is the fastest-growing foreclosure alternative. Many banks will allow a short sale, in which the home sells for less than the amount of the
loan. This is attractive for lenders because they lose less money than in a foreclosure. Also, short sales generally take less time than
foreclosures, so the banks don't have to carry the properties on their books as liabilities.
And it's attractive for homeowners because the impact on their credit is far less than in a foreclosure. It stays on their credit reports for only two
years, as opposed to seven years for a foreclosure, and often isn't a barrier to purchasing another home.
Short sales are paperwork-intensive, and there are many, many details involved. If you're considering this option, it's critical to work with a trained
real estate agent who knows all the steps required to successfully complete a short sale..
Keep in mind that no matter which option you choose, there may be tax and other financial consequences. You should consult with a tax advisor
or legal expert.
Foreclosure (Cash for Keys)
One of the biggest problems in foreclosures is that homeowners sometimes physically damage the property, or even sell some of the fixtures,
before leaving. Needless to say, this is not a good idea. It may expose the homeowners to financial and legal liability. It also makes the properties
much more difficult to sell.
To prevent this, some lenders offer a program called "Cash for Keys." The homeowners receive a check for vacating the property within a certain
time period and leaving it in good condition. If you have no alternative other than foreclosure, you should ask the bank about this option.
Tips From HUD
The U.S. Department of Housing and Urban Development has 10 tips for avoiding foreclosure:
Don't ignore the problem.
Contact your lender as soon as you realize you have a problem.
Open and respond to all mail from your lender.
Know your mortgage rights.
Understand foreclosure prevention options.
Contact a HUD-approved housing counselor.
Prioritize your spending.
Use your assets.
Avoid foreclosure prevention companies.
Don't lose your house to foreclosure recovery scams.
Vinson and McCord Realty LLC helps
you aquire a home, not just a house.
you aquire a home, not just a house.
VINSON & McCORD
REALTY LLC
REALTY LLC
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©2007-2012 Vinson and McCord Realty LLC. All rights reserved.
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